Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Sunday, September 18, 2011
Global Systemic Crisis: Implosive Fusion of Global Financial Assets, Worst Ahead / Economics / Credit Crisis 2011
As anticipated by LEAP/E2020 since November 2010, and often repeated up to June 2011, the second half of 2011 has started with a sudden and major relapse of the crisis. Nearly USD 10 trillion of the USD 15 trillion in ghost assets announced in GEAB N°56 have already gone up in smoke. The rest (and probably much more) will vanish in the fourth quarter of 2011, which will be marked by what our team calls "the implosive fusion of global financial assets". It’s the two major global financial centers, Wall Street in New York and the City of London, which will be the "preferred reactors" of this fusion. And, as predicted by LEAP/E2020 for several months, it’s the solution to the public debt problems in some Euroland countries which will enable this reaction to reach critical mass, after which nothing is controllable; but the bulk of the fuel that will drive the reaction and turn it into a real global shock (1) is found in the United States. Since July 2011 we have only started on the process that led to this situation: the worst is ahead of us and very close!
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Saturday, September 17, 2011
Global Imperatives of a Chinese Exporter / Economics / China Economy
Here are the two simple "equations" that all of the incessant rumor-inspired momentum chasers, equity bulls, peripheral EU bond bulls and relentless predictors of an imminent global Asia-backed bailout would do well to memorize:
1) Export Economy = Relatively Weak Currency
2) Chinese Economy = Export Economy
Friday, September 16, 2011
Not Made in America at the Root of U.S. Economic Crisis / Economics / Protectionism
Government attempts to inflate the money supply and stimulate growth through quantitative easing have failed, so far, because they gave the stimulus to banks, not directly to their citizens - stimulation will only work if the cash is spent:
- Giving the money to bankers is the equivalent to burying it - banks used the money to shore up their balance sheets and do not loan it out
- Consumers are already buried in debt and facing mass layoffs so taking on yet more debt by borrowing more money from the banks is not an option
Thursday, September 15, 2011
U.S. Economy Suffers Lost Decade, The Great Middle Class Poverty / Economics / US Economy
In yet another sign that the Great Recession cuts deep and long--the number of Americans living below the official poverty line reached 46.2 million, the highest in 52 years since the Census Bureau started tracking the figures in 1959.
The overall poverty rate also climbed to a 17-year high at 15.1%, which means 1 in 6 Americans are living below poverty line largely due to the high unemployment and underemployment rate. The official poverty line for 2010 is defined as an annual income of $22,314 for a family of four, and $11,139 for an individual.
Wednesday, September 14, 2011
China's Biggest Bubble Warning Ever / Economics / China Economy
When the Japan bubble peaked in the late 1980s, there were major warning signs. The same is happening in China too...
It's the biggest and clearest sign yet: China is a giant bubble waiting to burst.
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Wednesday, September 14, 2011
Universal Personal Bankruptcy to Save America's Economy? / Economics / US Debt
I have just read the most monumentally stupid article in the history of financial journalism. Nothing else I have ever read comes anywhere near it. It is not just stupid. It is magnificently stupid. It is something so incomparably stupid that Paul Krugman could only dream of writing something like it.
It was written by Brett Arends.
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Tuesday, September 13, 2011
U.S. Government Caught Killing American Jobs, Destruction by Design / Economics / Employment
A Note from Editor Jared Levy: At a time when job creation is front and center, and on an evening when our president vowed to bring jobs back into our economy, I learned of disturbing news.
An old friend of mine who used to trade with me on the floor of the Philadelphia Stock Exchange called me, outraged, after learning about the U.S. government's destruction of an American legend.
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Tuesday, September 13, 2011
Bernanke's Economic Hubris Leads to Depression / Economics / Great Depression II
Grasping for reasons why his multiple QEs and Fed balance-sheet-bursting policies haven't spurred economic activity, Dr. Bernanke posited a new diagnosis last week in Minneapolis. "Consumers are depressed beyond reason or expectation," the New York Times paraphrased the Fed chief as saying.
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Tuesday, September 13, 2011
Zombie Banks Stop Their Blood Feast is the Only Road to Economic Renaissance / Economics / Credit Crisis Bailouts
It would be almost laughably easy to bring a real renaissance in the US.
But first you have to understand the real problem. It’s not a lack of stimulus… Or, the inequality of income distribution… Or because the feds didn’t regulate enough. Or that bankers are greedy…or that capitalism won’t work.
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Tuesday, September 13, 2011
Twin Economic Problems: Employment and Consumer Spending / Economics / US Economy
The elevated unemployment rate remains at the top of the Fed’s worry list. Nearly as important is the recent trend of consumer spending. Bernanke’s speech of September 8 included an important takeaway on consumer spending:
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Tuesday, September 13, 2011
Eurozone Debt Crisis Intensifies: What Does The Canary In The Mineshaft Indicate? Contagion / Economics / Global Debt Crisis
1. Going forwards, the Eurozone crisis may turn into its own nemesis as confidence erodes swiftly and leadership is found to be wanting.
2. As all eyes turn to the Eurozone, what next? Falling euro has hit a 10-year low against the yen. Japanese market has closed at a 2.5 year low.
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Monday, September 12, 2011
China Economic Growth Fears Much Ado About Nothing / Economics / China Economy
Markets in Hong Kong, Vietnam, Taiwan and Korea are closed this week as people across Asia celebrate Moon Festival, one of the culture’s most beloved holidays along with Chinese New Year. Moon Festival’s origins center around a husband (Houyi) and wife (Chang’e), who were sentenced to live eternally separated on the sun and the moon.
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Monday, September 12, 2011
Posner Gets It Wrong on Macroeconomics / Economics / Economic Theory
Clifford F. Thies writes: Recession is the falling-down part. Depression is staying down. Normally, the recuperative powers of a market-oriented economy are sufficient that the falling-down part is immediately followed by a rising-back-up part. But, that's not happening now, and that didn't happen during the 1930s.
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Monday, September 12, 2011
U.S. Jobs Bill is Too Late For President Obama / Economics / Employment
When President Obama delivered his much anticipated jobs speech on Sep. 8, I was actually driving on one of those highways the President said would benefit from the infrastructure spending included in his proposed $447-billion American Jobs Bill. Listening to the live speech, and judging from the audience reaction, it was a good speech reminiscent JFK-style and was what American public wanted to hear.
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Sunday, September 11, 2011
Despite multiple QEs, why the US is yet to be hit by hyperinflation? / Economics / HyperInflation
Inflation is defined as ‘too much money chasing after too few goods’. But how about hyperinflation, how do we know whether an economy is experiencing hyperinflation?
Hyperinflation, normally caused by excessive growth of the money supply, usually through the policies of the central banks to print excessively to meet deficits spending.
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Saturday, September 10, 2011
Ron Paul Has Saved Us From Hyperinflation / Economics / HyperInflation
The United States is not going to get hyperinflation unless Congress nationalizes the Federal Reserve System.
It will get mass inflation at some point: anywhere from 15% per annum to 30%. But it is not going to get 50% or 100% or more.
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Saturday, September 10, 2011
Greece Reality Check: The Answer Is Taxing Tourist Property / Economics / Taxes
The Greek Government owes 320 Billion Euros, her partners in Europe are now considering letting her fall, cheaper to bail-out German and French banks (mainly) than throwing good money after bad at the basket-case.
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Saturday, September 10, 2011
Obama's Infrastructure and Jobs Plan / Economics / Infrastructure
According to the Organization for Economic Co-operation and Development (ODEC) the combined economies of Germany, France and Italy will grow by under one percent this year. OECD forecast the US economy will grow at a 0.4 per cent annualized rate in the fourth quarter, while in Europe, the three largest economies (Germany, France and Italy) will contract by 0.4 percent over the same period.
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Friday, September 09, 2011
Fragile State of the U.S. Economy, Bernanke Hints at Additional Monetary Policy Easing / Economics / US Economy
Chairman Bernanke summarized the fragile status of the U.S. economy and indicated that the Fed has tools that it is willing to employ to provide support to the economy. He did not dwell on the specifics of the tools. The key passage of the speech indicating that the Fed is vigilant and will act promptly is noteworthy:
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Thursday, September 08, 2011
The Economic and Financial System Is Coming Unglued, Living in a Degraded Democracy / Economics / US Debt
Our video host Stefan Molyneux speaks with Casey Research Managing Director David Galland about the debt situation in the US and whether the federal government can do anything about it… assuming they’d even want to.
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